Uniswap ( UNI ) Price Live Chart

What Is Uniswap (UNI)?

Uniswap stands out as a leading decentralized trading protocol, renowned for its role in automating the trading of decentralized finance (DeFi) tokens.

As a prime example of an automated market maker (AMM), Uniswap was launched in November 2018. However, it experienced a significant surge in popularity, particularly in the current year, fueled by the burgeoning DeFi ecosystem and the associated increase in token trading activity.

Uniswap's core objective is to maintain an automated and fully open platform for token trading, accessible to anyone holding tokens. Simultaneously, it aims to enhance trading efficiency compared to traditional exchanges.

Uniswap achieves greater efficiency by employing automated solutions to address liquidity challenges, thereby overcoming the issues that plagued earlier decentralized exchanges.

In September 2020, Uniswap took a pivotal step by creating and distributing its own governance token, UNI, to past users of the protocol. This move introduced both the potential for profitability and the ability for users to actively participate in shaping the protocol's future – a highly appealing aspect of decentralized entities.

Who Established Uniswap?

Uniswap emerged from a vision to introduce AMMs on the Ethereum blockchain to a wider audience. The platform's creator is Hayden Adams, an Ethereum developer.

During the development phase of Uniswap, Adams engaged in various projects, and his work was directly influenced by Vitalik Buterin, the creator of Ethereum. Buterin even played a role in naming the protocol; it was initially known as Unipeg.

Adams has also credited one of Buterin's blog posts as the original inspiration for the Uniswap platform. His initial decision to focus on Ethereum came after a friend encouraged him to delve into researching and understanding the protocol in 2017.

What Distinguishes Uniswap?

Uniswap's primary purpose is to generate liquidity – and consequently, trading activity and the value derived from it – within the DeFi landscape.

As one of the prominent AMMs currently operating, the protocol functions based on a formula for automated exchange: X x Y = K. Founder Hayden Adams identifies himself as the innovator of this specific implementation of the formula on Uniswap.

Uniswap transcends being merely a decentralized exchange; it actively seeks to resolve the liquidity issues encountered by earlier platforms like EtherDelta.

By automating the market-making process, the protocol incentivizes participation by mitigating risk and lowering costs for all involved parties. This mechanism also eliminates the need for user identification, and technically, anyone can establish a liquidity pool for any pair of tokens.

According to Uniswap, their governance token (UNI) was created to "officially enshrine Uniswap as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities."

Uniswap V2 was launched on November 2, 2018, introducing new functionalities such as ERC-20 pairs, price oracles, and flash swaps. The latest iteration, Uniswap V3, went live on the mainnet on May 5, 2021. It offers enhanced capital efficiency for liquidity providers, improved execution for traders, and a more robust underlying infrastructure. Leading up to the mainnet launch of V3, the price of Uniswap reached an all-time high (ATH) of $44.97. Since its launch, there has been considerable interest in its UNI to AUD and UNI to EUR trading pairs.

What Is the Circulating Supply of Uniswap (UNI) Coins?

The total supply of Uniswap's governance token, UNI, is capped at 1 billion units. These tokens will be released over a four-year period, after which Uniswap will implement a "perpetual inflation rate" of 2% to encourage ongoing network participation.

The current distribution of tokens is as follows: 60% allocated to Uniswap community members (i.e., users), 21.51% to team members, 17.8% to investors, and 0.69% to advisors. The latter three allocations will be distributed according to a four-year vesting schedule.

Of the portion designated for users, 15% was made available for claim by those who used Uniswap prior to September 1, 2020. This even includes users whose transactions were unsuccessful – they are eligible for 400 UNI.

The UNI token serves to foster shared community ownership in the growth and evolution of the decentralized protocol. This empowers UNI holders to participate in the governance of the Uniswap protocol and the broader ecosystem in a neutral and trustless manner. The success and widespread adoption of Uniswap products are expected to positively influence the price of Uniswap, thereby incentivizing token holders to contribute to the self-sustaining development of the ecosystem.

Four years after the UNI token's launch, in September 2024, a perpetual annual inflation rate of 2% will be introduced. This measure aims to ensure continued participation within the Uniswap ecosystem by discouraging passive holding of tokens.

How Is the Uniswap Network Secured?

Uniswap operates as a decentralized protocol for trading, and UNI is its native governance token. UNI functions as an ERC-20 token, meaning it relies on the Ethereum blockchain for its operation.

The ERC-20 standard defines a set of rules for tokens, along with security considerations primarily tied to the robustness of the Ethereum network. For instance, network congestion can elevate the price of gas required for transactions, leading to delays and unusually high transaction fees, which affect all participants.

Separately, vulnerabilities within smart contracts can pose security risks, potentially leading to DeFi traders losing funds. Indeed, hackers have successfully stolen millions of dollars in the relatively short history of DeFi as of September 2021.

Where Can You Purchase Uniswap (UNI)?

Uniswap's UNI governance token is available for trading on major cryptocurrency exchanges against various other cryptocurrencies, stablecoins, and fiat currencies.

These exchanges include Binance, Huobi, and Coinbase Pro, as well as, naturally, Uniswap's own protocols: Uniswap (V2) and Uniswap (V3).

You can find more information on how to enter the cryptocurrency market, regardless of the specific token you intend to buy, in dedicated resources.

Uniswap DAO

The Uniswap Decentralized Autonomous Organization (DAO) comprises over 310,000 members who hold UNI governance tokens, granting them the power to vote on the DAO's $1.6 billion treasury, governance procedures, and development roadmap for the decentralized exchange (DEX). Any UNI holder can propose changes; however, a proposal must first garner at least 25,000 "yes" votes to be considered for further discussion. The subsequent phase involves a consensus check, where the proposer must clearly outline the core changes and secure a minimum of 50,000 "yes" votes. Finally, the governance phase requires the proposal to attract 40 million "yes" votes for adoption. In 2021, Uniswap was the dominant DEX in terms of trading volume and ranked as the top DAO based on the value held in its treasury. Currently, it holds the second position, behind BitDAO, a DAO focused on funding and investing in emerging crypto projects. Detailed information on Uniswap DAO and other leading DAOs, along with their governance mechanisms, can be found in specialized analyses.

Uniswap's Acquisition of NFT Aggregator Genie

Uniswap is actively preparing for its next phase of development, aiming to become a comprehensive platform for digital asset ownership. The recent acquisition of Genie, an NFT aggregator and marketplace, through Uniswap Labs, is intended to empower the exchange's users with universal ownership capabilities. Integrating non-fungible tokens into Uniswap's product offerings is seen as a significant and intriguing development. Users will initially encounter this feature within the web application, with developer APIs and widgets planned for later integration.

Genie operates as an NFT marketplace aggregator, enabling users to discover, buy, and sell non-fungible tokens (NFTs) across multiple marketplaces. Notably, users can purchase NFTs from various marketplaces in a single transaction, significantly reducing associated gas fees.

Uniswap has announced plans to conduct a USDC airdrop for early adopters of the Genie platform, anticipated to take place in August 2022. Any user who interacted with Genie at least once or held a Genie Genesis NFT by April 15th is expected to be eligible for this upcoming airdrop. The claim period for this airdrop will extend for 12 months, providing ample time for eligible users to receive their rewards.

Furthermore, the Genie platform will remain accessible to users until the full rollout of the integrated Uniswap NFT experience. Uniswap's team recognizes NFTs as a crucial "web3 gateway" for both crypto enthusiasts and mainstream users. Applying their expertise in DeFi to the NFT space has the potential to broaden the reach of digital ownership and value to a larger audience.

This acquisition is not Uniswap's first foray into the NFT space. In 2019, the team launched the limited-edition Unisocks collection, which provided NFT liquidity pools backed by real-world assets. Additionally, Uniswap Labs continues its work on Uniswap v3 NFT positions to further advance on-chain generative SVGs.

Where Can I Buy Uniswap in INR?

You can buy or trade Uniswap on the SunCrypto platform using either the UNI/INR or UNI/USDT trading pairs.